Managing Underperformance: How to identify performance concerns early, support improvement and avoid common management mistakes.
Every business relies on employees performing to the required standard. When performance starts to slip, the effects can quickly be felt across the organisation. Deadlines are missed, colleagues pick up additional work, managers spend increasing amounts of time firefighting and customers may begin to notice the difference.
Yet underperformance is often one of the most poorly managed workplace issues. Many employers delay taking action because they hope the problem will resolve itself or worry that raising concerns will damage the employment relationship. In reality, early intervention is usually the fairest and most effective approach for both the employee and the business.
The good news is that many performance issues can be resolved successfully when they are addressed promptly and managed consistently.
Spotting Underperformance Early
Performance concerns do not always begin with missed targets or customer complaints. Often, there are early warning signs that something is not quite right. These might include:
- Work taking longer than expected to complete
- Increased errors or reduced attention to detail
- Missed deadlines or forgotten tasks
- Difficulty adapting to new systems or ways of working
- Reduced engagement or motivation
- Growing reliance on colleagues to complete work
The earlier concerns are identified, the easier they are usually to address.
Start by Understanding the Cause
When performance concerns arise, it is important not to jump to conclusions.
Poor performance can result from a variety of factors, including inadequate training, unclear expectations, increased workloads, changing responsibilities, health concerns or personal circumstances. What initially appears to be a lack of effort may have a very different explanation.
In my experience, underperformance is often linked to unclear expectations, insufficient support or delayed management intervention rather than an employee simply not wanting to do the job.
Before considering formal action, take time to understand what may be preventing the employee from performing at their best. A constructive and respectful conversation is often the best place to start.
Is It Capability or Conduct?
One of the most important questions to ask is whether the issue relates to capability or conduct.
A capability issue arises where an employee wants to perform well but is unable to consistently meet the required standard. This might involve struggling to achieve targets despite genuine effort, making repeated mistakes despite training or finding it difficult to adapt to changing requirements.
A conduct issue arises where an employee is capable of meeting expectations but chooses not to do so. Examples include: deliberately ignoring instructions; refusing to follow procedures; failing to complete work without good reason; and persistent lateness or poor attendance, without a reasonable explanation.
It is important not to make assumptions. Some issues that initially appear to be conduct-related may be linked to health conditions, disability, wellbeing concerns or other factors that require a different management approach.
Getting this distinction right from the outset helps ensure the issue is managed appropriately and fairly.
Before Moving to Formal Action
Before considering a formal capability process, ask whether the employee has been given a genuine opportunity to succeed.
Consider:
- Have expectations been clearly explained?
- Has appropriate training and support been provided?
- Have concerns already been discussed openly?
- Could health, wellbeing or personal circumstances be affecting performance?
Managers should also ensure similar situations are handled consistently across the business. Consistency helps build trust, supports fair decision-making and reduces the likelihood of disputes.
Address Concerns Early
Early conversations allow managers to explain concerns, understand the employee’s perspective and agree practical next steps. These discussions are often most effective when approached as a problem-solving exercise rather than a criticism of the individual.
Set Clear Expectations
Employees cannot reasonably be expected to achieve standards that have not been clearly explained.
Managers should be able to clearly describe what good performance looks like, how it is measured and what outcomes are expected. Vague statements such as “you need to improve” rarely result in meaningful change because the employee may not fully understand what is required.
Instead, focus on specific and measurable objectives. Clear expectations make it easier for employees to succeed and for managers to assess progress objectively.
Record Discussions and Provide Support
Even where concerns are addressed informally, it is sensible to keep brief notes of conversations, agreed actions and any support offered.
Good record keeping helps demonstrate that concerns were raised promptly, managed fairly and followed up appropriately.
The focus should always be on helping the employee improve. Support might include:
- Additional training or coaching
- Regular one-to-one meetings
- Clearer guidance and supervision
- Mentoring from a more experienced colleague
- Temporary adjustments to workload or priorities
Employers who focus on improvement rather than blame are often more successful in resolving performance concerns.
When Informal Management Is Not Enough
Where performance does not improve despite support and feedback, a formal capability process may be necessary.
A structured process allows employers to clearly explain concerns, review evidence, hear the employee’s response and set realistic improvement objectives. Appropriate timescales should also be provided to allow progress to be demonstrated.
In many cases, these objectives and review arrangements will be documented within a Performance Improvement Plan (PIP).
A formal capability process should not be viewed as a punishment. Its purpose is to provide a fair framework for managing performance while balancing the needs of both the employee and the business.
Using a Performance Improvement Plan
A PIP helps set out what improvement is required, how progress will be measured and what support will be available:
An effective PIP should:
- Clearly identify the areas requiring improvement
- Set realistic and measurable objectives
- Explain the support available
- Include regular review meetings
- Allow sufficient time for improvement
The most successful plans provide structure, accountability and a practical roadmap for improvement. They should be viewed as a tool to support progress rather than simply a record of underperformance.
Final Thoughts
Managing underperformance is rarely comfortable, but it is a core management responsibility.
Employees deserve to understand what is expected of them, when standards are not being met and what steps are needed to improve. Businesses that address concerns promptly and manage them consistently are far more likely to achieve positive outcomes than those that avoid difficult conversations.
Addressing performance concerns early is often the difference between helping an employee get back on track and managing a much more complex issue later.
In most cases, the goal is not to remove an employee from the business. It is to help them succeed.
Need support managing an underperforming employee?
Early HR advice can help managers handle difficult conversations confidently, implement effective performance improvement plans and manage capability issues fairly, consistently and in line with good practice.